Speedway maybe being acquired?

Started by -- US 175 --, February 26, 2020, 06:19:28 AM

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-- US 175 --

Just saw this article:
https://www.bizjournals.com/dallas/news/2020/02/21/7-eleven-speedway.html

Bloomberg and the Dallas Business Journal are reporting the possibility that Seven & I, the parent company of 7-Eleven, is interested in acquiring Speedway from Marathon Oil.  No confirmations yet, although a price of $22 billion was mentioned.


kevinb1994

Quote from: -- US 175 -- on February 26, 2020, 06:19:28 AM
Just saw this article:
https://www.bizjournals.com/dallas/news/2020/02/21/7-eleven-speedway.html

Bloomberg and the Dallas Business Journal are reporting the possibility that Seven & I, the parent company of 7-Eleven, is interested in acquiring Speedway from Marathon Oil.  No confirmations yet, although a price of $22 billion was mentioned.
Crazy how Seven & I thinks that they can get away with this, not something I'd like to happen personally, IMO

Scott5114

Quote from: kevinb1994 on February 26, 2020, 09:28:37 AM
Crazy how Seven & I thinks that they can get away with this, not something I'd like to happen personally, IMO

They probably don't think they're crazy at all for engaging in a perfectly valid business acquisition. What is there to "get away with"?
uncontrollable freak sardine salad chef

kevinb1994

Quote from: Scott5114 on February 27, 2020, 06:06:26 PM
Quote from: kevinb1994 on February 26, 2020, 09:28:37 AM
Crazy how Seven & I thinks that they can get away with this, not something I'd like to happen personally, IMO

They probably don't think they're crazy at all for engaging in a perfectly valid business acquisition. What is there to "get away with"?
I don't know about this being perfectly valid somehow.

US71

Quote from: -- US 175 -- on February 26, 2020, 06:19:28 AM
Just saw this article:
https://www.bizjournals.com/dallas/news/2020/02/21/7-eleven-speedway.html

Bloomberg and the Dallas Business Journal are reporting the possibility that Seven & I, the parent company of 7-Eleven, is interested in acquiring Speedway from Marathon Oil.  No confirmations yet, although a price of $22 billion was mentioned.

EG was also interested at one time, but I guess they changed their minds.  IF this goes through, I see a lot of stores being sold to other companies.
Like Alice I Try To Believe Three Impossible Things Before Breakfast

kevinb1994

Quote from: US71 on February 27, 2020, 06:57:56 PM
Quote from: -- US 175 -- on February 26, 2020, 06:19:28 AM
Just saw this article:
https://www.bizjournals.com/dallas/news/2020/02/21/7-eleven-speedway.html

Bloomberg and the Dallas Business Journal are reporting the possibility that Seven & I, the parent company of 7-Eleven, is interested in acquiring Speedway from Marathon Oil.  No confirmations yet, although a price of $22 billion was mentioned.

EG was also interested at one time, but I guess they changed their minds.  IF this goes through, I see a lot of stores being sold to other companies.
A lot of stores being sold to other companies is the only compromise in this deal that I'd imagine happening.

Scott5114

Quote from: kevinb1994 on February 27, 2020, 06:29:56 PM
Quote from: Scott5114 on February 27, 2020, 06:06:26 PM
Quote from: kevinb1994 on February 26, 2020, 09:28:37 AM
Crazy how Seven & I thinks that they can get away with this, not something I'd like to happen personally, IMO

They probably don't think they're crazy at all for engaging in a perfectly valid business acquisition. What is there to "get away with"?
I don't know about this being perfectly valid somehow.

Seven & I gives Marathon $22 billion. Marathon gives Seven & I Speedway.

What's not valid about that?
uncontrollable freak sardine salad chef

kevinb1994

Quote from: Scott5114 on February 27, 2020, 08:32:16 PM
Quote from: kevinb1994 on February 27, 2020, 06:29:56 PM
Quote from: Scott5114 on February 27, 2020, 06:06:26 PM
Quote from: kevinb1994 on February 26, 2020, 09:28:37 AM
Crazy how Seven & I thinks that they can get away with this, not something I'd like to happen personally, IMO

They probably don't think they're crazy at all for engaging in a perfectly valid business acquisition. What is there to "get away with"?
I don't know about this being perfectly valid somehow.

Seven & I gives Marathon $22 billion. Marathon gives Seven & I Speedway.

What's not valid about that?
That's a lot of billions buddy...

Scott5114

uncontrollable freak sardine salad chef

kevinb1994


Scott5114

It's worth whatever someone is willing to pay for it. Business valuations are more art than science; there's no way to tell how much a going concern is really worth. You can tally up the physical assets, but that doesn't take into account the know-how of the personnel, any unique advantages the business has over its competitors, customer base, brand equity, etc. Turning all that into a dollar amount is basically just guessing. So it's worth whatever someone is willing to fork over to own it.
uncontrollable freak sardine salad chef

SP Cook

Leaving out the hysteria (imagine, a company acquiring a similar company, but there still being 1000s of competitors with none having anything close to a monopoly, oh the horror) , there are a couple of issues.

Speedway, as outlined in another thread, just finished absorbing the Hess chain, and if the acquisition involves rebranding, would embark on yet another.

Speedways, at least the "old"  ones, (have not been in an ex Hess yet) are generally smaller and laid out very differently than 7-11s. 

Speedway just signed a long term sponsorship deal with Indy cars, which works for that name in a unique way.

Most importantly, 7-11 has a complex history, one effect of which is that it sold its name off in large parts of the country to unrelated entities.  In my state, for example, the handful of 7-11s are unrelated to the corporation and can use any trademark in use when they bought in in the 70s, but nothing new.  Totally different stores than other places.  Lots of place like that.

And, of course, there are places with existing stores of both brands too close.

Might be better just to buy Speedway and leave it under that name, at least for a while.

US71

Quote from: kevinb1994 on February 27, 2020, 11:28:20 PM
Quote from: Scott5114 on February 27, 2020, 08:46:55 PM
So?
It's really not supposed to be worth that much.

Buy the company, run the price up, then sell it off in pieces. Worked for Fast Eddie.  ;)

I worked for the old Road Runner c-store chain that was based in Texarkana. When TOTAL bought them out, they slowly closed a lot of RR's. A few remained open as Total stations , which we were assured would never happen. They also promised pay raises, but instead cleaned out management and employees.

Like Alice I Try To Believe Three Impossible Things Before Breakfast

GCrites

7-11 has had a lot of struggles trying to get a foothold in the the Columbus metro. Many locations have opened and closed over the years in the area. Speedway, on the other hand, has lots of flourishing locations in this market.

vdeane

Quote from: SP Cook on February 28, 2020, 10:24:51 AM
Speedways, at least the "old"  ones, (have not been in an ex Hess yet) are generally smaller and laid out very differently than 7-11s.
The ex-Hess stores (at least most of them) are tiny and barely even qualify as convenience stores.  They might be looking to upgrade them over time, though - this one is now an Exxon while the Sunoco next to the McDonalds on the other corner is now a nicer (how nice, I'm not sure; haven't been there since the switch) Speedway.
Please note: All comments here represent my own personal opinion and do not reflect the official position of NYSDOT or its affiliates.

hbelkins

I'm pretty sure I was in an ex-Hess location in South Carolina a few years ago. It was very roomy and clean. You could tell they were in the process of converting (still a lot of green inside, instead of red and blue).

I've noticed that there's little consistency in 7-Eleven locations, as opposed to places like Speedway, Sheetz, etc.


Government would be tolerable if not for politicians and bureaucrats.

renegade

7-Eleven will run Speedway into the ground, then walk away with the tax write-off. :ded:
Don’t ask me how I know.  Just understand that I do.

roadman65

In Florida you can find two 7 Elevens on one street corner.  Many cause Mobil struck a deal with them where some Mobils were already across the street from an original store, so you have two.  Kirkman and LB McCleod in Orlando comes to mind.  Both on the NB side of Kirkman as well.
Every day is a winding road, you just got to get used to it.

Sheryl Crowe

D-Dey65

#18
In Spring Hill, Florida, you can find a 7-Eleven that sells Mobil Gas on the northeast corner of Barclay Avenue (HCR 585) and Spring Hill Drive (HCR 574), a 7-Eleven that replaced an A-Plus convenience store inside a Sunoco gas station on the southeast corner of Barclay Avenue (HCR 585) and Cortez Boulevard (FL SR 50), and an all 7-Eleven gas station and convenience store on the southeast corner of FL 50, east side of Winter Street and northeast corner of Winter Street and Wiscon Road (HCR 570). And those are hardly the only 7-Elevens in this unincorporated suburb in southwestern Hernando County.

US71

Quote from: renegade on March 01, 2020, 12:59:56 PM
7-Eleven will run Speedway into the ground, then walk away with the tax write-off. :ded:

Only the under performing locations.  I saw a lot of this when E-Z Mart acquired Spe-Dee Mart and Total acquired Road Runner.
Like Alice I Try To Believe Three Impossible Things Before Breakfast

GCrites

Speedway is in the middle of a massive addition to their HQ in tiny Enon, Ohio. It will be interesting to see what happens with the space if they are acquired. While it is located in a very small market in west-central Ohio, it does have good highway visibility.

https://www.google.com/maps/@39.8899232,-83.9293768,3a,75y,140.63h,86.29t/data=!3m6!1e1!3m4!1sP_-R0GXgZEeZwS3_UOwGbQ!2e0!7i16384!8i8192

The trees make it hard to see.

US71

Quote from: GCrites80s on March 03, 2020, 11:02:01 PM
Speedway is in the middle of a massive addition to their HQ in tiny Enon, Ohio. It will be interesting to see what happens with the space if they are acquired. While it is located in a very small market in west-central Ohio, it does have good highway visibility.

https://www.google.com/maps/@39.8899232,-83.9293768,3a,75y,140.63h,86.29t/data=!3m6!1e1!3m4!1sP_-R0GXgZEeZwS3_UOwGbQ!2e0!7i16384!8i8192

The trees make it hard to see.

Theoretically, it could become a regional office.
Like Alice I Try To Believe Three Impossible Things Before Breakfast

US71

Like Alice I Try To Believe Three Impossible Things Before Breakfast

kevinb1994


ilpt4u




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